What are my options? How can I avoid foreclosure?

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          If you are only behind a couple of payments, you could get a personal loan from a friend or family member to catch up on payments or sell items fast like jewelry, your vehicle, etc. You would need to be able to pay your mortgage (& the personal loan) back on time each month afterwards. This is usually the best option for homeowners who are not far behind their payments and had a short term loss of income and will soon regain enough income to pay their debts.

          Can you qualify to refinance your current loan(s) so that the payments are lower and amortized over a new 30 year period? You will likely need good credit scores and current income as well as low debt, or could pay off some of the revolving debt with your refinance if you have a lot of equity in your home. Or you could get a 2nd mortgage if you have enough equity and can make the payments of both mortgages. You will need to consult a good mortgage lender for help with this and look at different banks/mortgage companies. Pay attention to current rates versus what you may already have.

           Will your current mortgage company work with you on a forbearance or a loan modification? This often has a negative effect on your credit report (but not nearly as bad as a foreclosure) so be certain you have explored options 1 & 2 first. Contact your  current mortgage company/note holder to see what options they can offer and if they are willing to work with you.  You may have to do a trial period to show that you can make 3 monthly payments at the new modified amount and the company may also require proof  of a financial hardship to qualify for a modification. There may be restrictions on the amount of money you can have in reserves/savings accounts.

          This does not always work if you are short on time and the foreclosure sale date is approaching soon but will often get you the most money for your home. You must be able to sell your home and get enough money to pay off all of your home mortgage(s), liens against your home, HOA fees, and any taxes you owe as well as money for closing costs, and realtor fees. This also usually requires having your home be in top condition to get top dollar and you must allow showings, open houses, inspections, etc. 

          This is the best way to sell your home fast! 

This is what our company does. We buy homes from people that need to pay off their homes before foreclosure is finalized. If you sell to us, you won't have foreclosure on your credit report! This can even give you money to start over again (depending on the equity in your home and debt owed). 

          You can get paid cash for your home and your credit report will be saved from having 7 years of really bad credit due to the foreclosure. We can close much faster than listing your home with a realtor and we don't need you to repair the home or get it "show ready", we can buy it AS-IS.  Sometimes we can even pay for the closing costs. We specialize in North Carolina but will consider purchases in other states. 

          We understand that you may not want to sell your home and move as it likely holds sentimental memories, but if your home sells at foreclosure, you will be forced to move with foreclosure on your credit report now showing that you are high risk for future landlords or loans. It's better to try and get a fresh start on your own by selling your home and not have foreclosure hanging over your head. Contact us today for a FREE, no obligation, estimate to buy your home. It will give you an option to consider and is one way to get out of foreclosure.

          The bank may allow you to give them ownership of the home in exchange for release of loan debt but this does not often happen and will only work if you have only one home loan and no other debt against your property. Your credit score will be negatively impacted and only slightly less than foreclosure. This should only be considered after all previous options have been tried.

          Filing Bakruptcy DOES NOT always mean you get to keep your home; in fact, sometimes it will force you to sell your home to pay off your debt. It will stall the collectors and the foreclosure, but you will have to go through many meetings, court dates, credit counseling, and be able to keep up with payments in your payment plan depending on your individual bankruptcy. You don't just file it and walk away, it is much more invoved than that and an attorney has to help you.

           This is the last resort if all of the above options have been exhausted and you cannot sell your home. Bankruptcy should only be used if you have no equity at all in your home and have several other bills you are not able to pay, like car loans, utilities, credit cards, etc. You will need to consult a bankruptcy attorney and have them file for you. They can also tell you your options between the different types of bankruptcy. If possible, you do not want to foreclose or file bankruptcy! If you have equity in your home, your best option is to sell your home so you don't have long lasting negative effects on your credit report.

          Foreclosure & Bankruptcy both have very negative impacts on your credit score and limit your ability to get future loans and make your interest rates and payments be much higher than if you can sell your home and pay off debt. Please consider all options and act with a sense of urgency. You may not want this to be happening, but wishing it away won't stop it. 

We know this is a stressful situation for you and hope that some of these options help you and your family move forward in the best way possible. Let us know if you would like us to consider buying your property. 

(Diclaimer: We are not attorneys, realtors, or accountants and cannot give legal, credit, or tax advice. This information should be viewed as opinions/ideas and you should consult a professional for advice pertaining to your specific situation and your location to follow all local and state laws. Your county courthouse or Clerk of Court office is a good place to start with questions about the foreclosure process in your area/state).